A Cat-5 Debt Crisis is Coming Our Way!

Editor’s Note: The following is adapted from the main article of my November Real Wealth Report, which published last Friday. I consider it so important that I want everyone to read it. — Larry

It’s not kind to President Obama, but whether you agree with my views or not, it’s an important read …

The Sovereign-Debt Crisis Coming Our Country’s Way Will Be a Category 5 Financial Storm

And Obama’s Second Term is Entirely Consistent With it

Obama’s policies of class warfare and fat tax increases on the job-producers and risk-takers in our country will tear our society apart by the seams.

It will deepen the looming sovereign-debt crisis, and eventually destroy the U.S. dollar.

The next eight months – before the crisis fully hits our economy – will be your very last chance to get your financial house in order.

Fact is, I didn’t like either presidential candidate all that much. But Obama’s policy of instigating and escalating class warfare in our country, further dividing our society and blaming almost everything on the rich is just about the worst platform any leader can have.

Just consider the history of class struggles and you will see what I mean. They almost never solve any of those problems. Instead, they often lead to terrible consequences.

Nearly every one of the revolutions in our history was largely triggered by class warfare – blaming the rich, targeting them for higher taxes and, in many cases, literally chasing them out of their country.

And what happened as a result? In the majority of cases, the revolutions turned bloody, the existing government collapsed, the underlying economy was destroyed and society crumbled to its very core.

In some cases, class warfare led to genocide, civil war and even armed international conflict and world wars.

Consider the U.S. economy right now. It’s lousy; the number of people in the labor force is the lowest it’s been in 31 years. We’ve had 43 months where unemployment has exceeded 8%.

You would think President Obama would want all the help he could get to boost employment. He would want those with money and credit to take risks to stimulate job growth, new industries, new technologies, entrepreneurship and more.

But instead, Obama has made class warfare his biggest priority. That’s why he’s even insanely claimed that those with money never would have made it “without government help.”

And why he has labeled small business and job-creators as “millionaires and billionaires” — targeting them instead for higher taxes.

It’s all allegedly in the name of “fairness” and supposedly aimed at closing the budget deficit.

Yet according to the Internal Revenue Service, the top 1% of U.S. taxpayers pay about 36% of all federal income taxes, while 47% of Americans don’t pay a single dime.

It’s why President Obama will stick to his guns on the upcoming fiscal cliff negotiations, keeping tax hikes in place for the wealthy at all costs, while conceding on other measures such as spending cuts.

Mind you, President Obama defines the “rich” — those he is targeting for higher taxes — as individuals earning $200,000 a year or more, and $250,000 a year for those married filing jointly.

That’s hardly “rich” by any measure. Not in today’s world of generally rising living costs and declining real incomes, net of inflation.

Is it any wonder that …

President Obama, in his first term, signed more than 923 Executive Orders — almost 15 times more than former President George W. Bush signed during his two terms while fighting the war on terror?

You now have to report every penny of financial assets you own overseas?

If you owe taxes to the IRS, they can confiscate your passport, without a court order?

The reporting requirement for sending money overseas has dropped from $10,000 to $3,000?

It’s hardly surprising to me. Many of the Executive Orders Obama has signed have been entirely consistent with his attacks on the rich all along …

Turning the “Patriot Act” into something it was never intended to be — a scheme to systematically deny American citizens, especially those with wealth, one liberty after another.

No, it’s not likely that Obama’s policies will lead to massive bloodshed in our country or to a world war, as many other cases of class warfare have done.

President Obama could confiscate 100% of their estimated $6.4 trillion in wealth and it would hardly make a dent in the $222 trillion Washington owes us, its foreign creditors, Social Security, Medicare and more.

Quite to the contrary, it will aggravate our federal deficit and our national debt by systematically robbing our country of economic growth that’s largely propelled by entrepreneurs and risk-takers, by job-creators.

Again, just take a look at the history books. During the French Revolution, class warfare leader Maximilien Robespierre enforced confiscatory taxes on the rich with the guillotine. Those that could get out of the country, left as fast as they could.

In 1290, King Edward I issued an edict expelling all money-lenders (predominately the wealthy Jews) from England. And as we all know, Hitler went after them too.

During the Bolshevik Revolution, Vladimir Lenin declared class war against capitalists, confiscating their privately owned land, banks and businesses. It destroyed the productive capacity of Russia and set off a famine that killed an estimated 5 million Russians.

In 1929, Joseph Stalin pursued a class war as well, seizing the assets of Russia’s rich farmers, causing yet another famine where an estimated 7 million people subsequently starved to death.

Mao Tse-tung attacked China’s wealthy capitalists, promoting the Cultural Revolution which resulted in an estimated 45 million Chinese people starved or beaten to death between 1958 and 1962.

More recently, in Argentina, President Cristina Kirchner seized private pensions supposedly to help cover government budget deficits. Yet government spending subsequently soared 40% as Argentines fled the country, taking their cash and wealth with them.

In Europe, France is hollowing out its economy, raising taxes
on the wealthy (those earning more than $1.2 million to a 75% tax and for those earning over $186,000, a 45% tax) — and raising taxes on assets, inheritance and dividends.

Already, many big French names are leaving France. PPR, the luxury-goods group controlling Gucci and Yves Saint Laurent, is said to be relocating executives to London. Private-equity executives Bertrand Meunier and Christophe Florin have left for jobs in Switzerland and Abu Dhabi.

Entrepreneur Pierre Chappaz, founder of websites Kelkoo and Wikio Ebuzzing, has moved to Switzerland. Marc Simoncini, one of France’s most famous dot-com investors, is threatening to move to Belgium.

French magnate Bernard Arnault – Europe’s richest man, head of the LVMH fashion and Luxury Empire, and owner of iconic brands like Louis Vuitton, Moet and Chandon, Hublot and Bulgari – recently announced he had applied for Belgian citizenship in what may be an initial move toward acquiring tax-free status in Monaco.

Here in the U.S., wealthy Americans renouncing their U.S. citizenship is exploding higher, up sevenfold since 2008.

A record 1,781 U.S. citizens gave up their citizenship last year, compared to 231 in 2008.

I expect that trend to accelerate in the months and years ahead. Obama’s class warfare strategy virtually guarantees it.

Capital will flee the U.S. like never before. It will deepen the sovereign-debt crisis by reducing federal tax receipts, making it nearly impossible to shrink the federal deficit, not to mention our country’s $222 trillion of national debts and IOUs.

In the end, by the time the U.S. sovereign-debt crisis reaches full-tilt, it will also hollow out the U.S. dollar – making it virtually impossible for the greenback to remain the world’s single reserve currency.

I wish things were different. We all do. But I am afraid they are not, and I’m convinced that President Obama will soon come to regret a second term.

His policies virtually ensure that the sovereign-debt crisis will become a full Category 5 storm when it does hit the U.S., in the middle of next year.

How to Prepare … and Why 2013
Will be Your Very Last Chance to Do So!

Based on my timing models, I believe the U.S. will become fully infected with a sovereign-debt crisis around the middle of 2013.

That means that the eight months between now and the middle of next year represent your last window of opportunity to fully prepare for the mother of all financial storms.

The good news is that you have time. You also have the markets on your side, provided you understand the forces at work.

The majority of investors won’t see the storm coming. Even fewer will be prepared. Fewer still will understand how it will pan out.

My Real Wealth Report subscribers are in a unique position — well-ahead of the game, with a deep understanding of when, why and how the storm will hit … and what its consequences will be.

We’re in the first phase now. Europe is still going down the tubes.

There’s a worldwide contraction of credit happening right now that’s overpowering most markets and central bank money-printing. This first phase is largely disinflationary, precisely as I have been warning you.

And it will remain disinflationary, until the U.S. is fully engulfed by the sovereign-debt crisis around the middle of next year.

Between now and then, you can expect more downside action in commodities and stocks, setting up buying opportunities of a lifetime …

Don’t be fooled by the declines. Take advantage of them with speculative funds using bearish vehicles that profit from declining markets.

And then, when everyone else is panicking and selling, get ready to buy virtually everything under the sun. More money can be made in the markets over the next few years than in a lifetime of work, provided you know how the sovereign-debt crisis is going to unfold.

Best wishes,

Larry

P.S. Real Wealth Report is a no-brainer for any investor who wants a different, independent point of view. That alone is worth the cost of a membership, at just $89 a year.

Add in all my recommendations — in precious metals, in natural resource-based income stocks, in currencies, in Asian investment plays and more — and the $89 membership fee is an outrageous bargain! Click here to join now.

Larry Edelson has over 34 years of investing experience with a focus in the precious metals and natural resources markets. His Real Wealth Report (a monthly publication) and Power Portfolio provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management.

For more information on Real Wealth Report, click here.
For more information on Power Portfolio, click here.

I totally disagree with your comments. Rich people in the US have had large increases in their wealth while the average citizen has lower earnings than 20 years ago. There is a reason why the gap in wealth increased more in the last 20 years or so. Tax loopholes, offshore accounts, trading on privy info, fraud, are just a few ways they ‘ve taken advantage of everyday Americans. The so called job creators, with all their wealth, haven’t created a damn thing except more money for themselves. We lost jobs to cheaper labor in foreign countries because ther rich saw an opportunity to increase their profits at everyone else’s expense. When they were shipping jobs out of the country, do you think they were thinking of making America a better society for all. No, the only thing they thought of was PROFITS. Do you know that US coporations have several trillion dollars sitting in foreign banks and won’t bring it back to America unless they get a tax reprieve.

Now , they’re crying because they’re having to pay for those profit gains with a higher tax rate. BOO HOO. Perhaps, a little revolution is good for the country. Helps to bring back some morality and sanity to our profit at all cost society.

I find Larry’s current article “A Cat-5 Debt Crisis is Coming Our Way” truely absurd. Yes, I believe we are headed for a debt crisis, but to suggest President Obama has been instigating class warfare & this will trigger the crisis is ridiculous. The GOP since the days of Ronald Reagan have been practicing class warfare, & the massive shift in wealth from working tax payers to the financial elites bares this out. Mitt Romney’s campaign of the “47%, the givers & the takers”, & his elitetist demagoguery clearly point to class warfare. The Bush tax cuts that disproportionately benefited the rich were not meant to be permanent. We’ve had 12 years of these tax cuts that were supposed to benefit the economy & grow jobs (trickle down), but just the opposite has happened. The rich must begin paying their fair share & all their tax loop holes must be closed. Government needs to be reduced in size, defence spending needs to be cut, foreign add needs to be reduced, & infrastructure restoration needs to increase. The mega rich who are hiding their wealth overseas instead of keeping it in this country where it could be put to use starting new businesses & creating jobs are doing this country a great disservice.

In case you have not already noticed you have class warfare going on now. To say that the ultra rich and market speculators are job creators is pure fantasy and you know it. The rich are awash in money now so by your criteria there should be jobs galore for those seeking work. You know that is not the case and the real situation is quite the opposite. Market speculation, while it creates wealth for those who have the money to play, creates very few if any real jobs in the real economy.

Don’t get me wrong, I am no fan of President Obama, but for reasons different than yours. He has done nothing to restore the civil liberties taken away in the Bush era by the so called Patriot Act. If fact he has worsened the situation in so many ways. His so-called health care has only put money in the pockets of the insurance companies and really not improved the situation for those who need it most was a gift to the insurance companies and has greatly added to the cost of medical care. Yes, he has been big on socialism, but not socialism for the people, but socialism for the banks and speculators in the country by bailing them out of their financial difficulties that they created themselves. Where is letting market forces rule when banks coming with hands out to bail them out of their speculative excesses.

With respect to creating class warfare, Romney was no exception. He brazenly stated that he did not give a damn about over half of the population and that he was focusing his efforts on those swing voters. If that is not fueling class warfare, I don’t know what is.

The country was by far more balanced and wealth distribution more equitable forty or fifty years ago. The middle and working classes had a fairer share of wealth and the higher income earners paid a much fairer share of taxes. It did not lead to an exodus of the wealthy from the country then, so why should it now. To say that “47% of Americans don’t pay a single dime” is an utter falsehood. All Americans pay tax, property taxes, sales taxes, road taxes, etc. The present state of wealth disparity has created a jobless situation where incomes drop below the point where they have to pay income taxes. If you don’t have a job you can’t pay income taxes. That does not mean that these people are welfare bums as you imply. By far the vast majority want very much to be gainfully employed and pay their share of taxes.

Wealth disparity is the real creator of class warfare and you know it. You blithely ignore the hugely disproportionate disparity in wealth that has grown over the past 20 years. The super rich hoard more wealth than at any time in the history of the country and perhaps even in the history of the world. You cannot see that balance is what is necessary. Much of the wealth that has been created in the past 10-15 years has been through fraudulent banking practices, through hedge funds that manipulate markets and by those who have money and know how to game the system.

You make no mention of the bloated Pentagon budget that is out of control and the vast sums spent on wars and armaments. These are huge drains on the economy and channel money from taxpayers to corporations, very often without competitive bidding. The reduction of taxes for those individuals and corporations who already have more wealth than they need is sheer folly. Why should speculators get preferential treatment and pay less proportionately than the middle and working classes. Why? Because they had the power to change the laws and create loopholes wherein they could stash away the cash, open foreign bank accounts and off-shore their money. Do you call that fair? Do you call that patriotic? I don’t.

I do agree with you that class warfare can and has lead to violent revolution in the past and probably will do so in the future. If you don’t think that the present state of wealth disparity is a major factor in creating this situation then you are sadly deluded. No one, absolutely no one, needs to accumulate wealth so far beyond their needs that it puts the rest of society in jeopardy. History has proven that when wealth distribution puts people into a situation where they have nothing to provide for themselves and their families, then have nothing to lose by toppling the system. If the rich and super rich continue to hoard their money, off-shore jobs, pay outrageous bonuses for the financial elite and so on, then the rich and super rich will have to accept much of the blame for letting society get so far out of balance that it leads to the worst of outcomes.

Never fails to amaze me how few people understand that a bigger government requires more of our taxes, and gives us nothing in return except an unserviceable debt. It really is THAT simple. I’m poor and still agree that taxing the rich more will only hurt us in the long run. We need capitalists to invest in American jobs but that’s never going to happen when the IRS and Executive branch punish anyone running a business.

On paper American companies appear to pay higher rates of tax than other countries, but the reality is quite the opposite. American companies pay far lower business taxes than most of the G20. How do you explain GE paying NO taxes when profits are at an all time high. There are many major corporations that have succeeded in taking advantage of loopholes in the tax structure or just simple off-shoring profits to avoid paying taxes. These same corporations use the same infrastructure that we all do and yet pay little or nothing to support it. This kind of situation cannot go on forever. The tax burden has shifted to those less well off and you should be hopping mad about that.

Your capitalists that you would have invest in American jobs are very busy at present off-shoring jobs and profits. You should be hopping mad about that too.

I do agree that government must be reduced in size and while we are at it let’s cut the Pentagon budget which is out of control and totally over the top. The money that has been wasted on stupid wars is a major part of the huge deficits that we are seeing. Yes, and while we are at it let’s cut government spending and start with cutting subsidies to oil and gas companies and other hugely profitable corporations. Ask yourself why it is only the social programs that are targeted and not the out of control military budgets and subsidies.

Yes, the rats always flee what they perceive as a sinking ship! In all other periods of world history, due to the disconnectedness of societies and nations, they could always run to another country and set up shop there, taking their ill-gotten gain with them.

This time, with an interconnected world, there will FINALLY be nowhere for the vermin to flee. For a time they will try, but eventually the authorities will close in on the scheisters and levy the penalty long-deserved.

PARASITES REVEALED

The true enemies of mankind are the parasites at the top who suck 80% of the world’s wealth. A super computer program run by Swiss scientists has proven that corporate connections and ownership of thousands of worldwide companies trace back to about 140 major corporations—which in turn trace back to a HANDFUL of elite banking families.

Yes, kids, the jig is finally up! The people of the Earth are about to remove the masks from the faces of their oppressors—-those who have used the common people as virtual financial slaves to enrich themselves.

The baloney about “risk-takers” and “entrepreneurs” is pure hogwash. Today in America the common man is LOSING big time—-getting poorer by the minute, while the elite grow fatter and richer by the minute. Bush saw to that. Now, believing they may have to pay their fair share, they want to move abroad.

NOT PATRIOTS BUT INTERNATIONALISTS

Real patriotic right? These parasites were NEVER true Americans, but have always been internationalists—-make money at the EXPENSE of the American people or any people they are able to suck the lifeblood from. REJOICE AMERICA—–you will soon be freed from your oppressors.

It’s not just obscene rules for sending money overseas. If you leave California to move within the US, you will now be penalized. I’m so glad I left the United Socialist States of Amerika when I had the chance.

Looks like the Progressive spin network is organized, and out in force, as evidenced by comments here. They are going to attack, and try to silence, anybody that doesn’t agree with their political agenda. Just illustrates your point about how class warfare is tearing our society apart at the seams.

No matter how much they think things “should” work the way they want, we won’t have long to wait for time to prove you right in the real world.

In the absence of anti-competitive regulation and preferential legislation for cronies and too big to fail businesses, all citizens have the same opportunities, and can take advantage of the same “loopholes”, if they are willing to make the same efforts to discover and implement them. Government creates these “loopholes” to encourage certain activities it deems beneficial to society and the economy. Should those who take advantage of them be demonized?

Allen, Really? ” Government creates these “loopholes” to encourage certain activities it deems beneficial “, but not, as you note, beneficial to society and the economy. These so-called loopholes are bought and paid for in our Republic (ahem, not Democracy) by-and-for a select few. This is the definition of class against class. And the moneyed class have been winning, to the detriment of our economy.

While you note that; “In the absence of anti-competitive regulation and preferential legislation for cronies and too big to fail businesses, all citizens have the same opportunities…”. What country are you referring to?
Do you really believe there is an absence of cronyism? That we have sufficient anti-competitive regulation? Are you blind to the too-politically-connected-to-fail conundrum?

You are absolutely right about one thing, “we won’t have long to wait”. If you can stomach a peek into the future you might want to take a look at some facts posted here; http://www.youtube.com/watch?v=Wd4HDautaUw
You may learn something you won’t find on either the “progressive” news outlets or from the “Murdoch news” empire.

Larry has been putting a lot of hate on Obama from day one. I’ve caught him criticizing Obama for the same things Bush did, and he never went after him like he’s done with Obama. First, Obama never caused any class warfare. That’s sheer nonsense. If anyone has caused this so-called class warfare, it’s been the wealthiest class in America when they rigged Wall St. for themselves. They’ve been getting the greater sum of the profits for the past 30 years while they make the middle class poorer. Larry likes to cite statistics. Well, he should look at the stats on how the wealthiest have made out as opposed to the middle class. The latter have had wages and wealth go downhill while the fat cats sit back and stash their huge profits in shielded accounts or offshore like Mitt Romey. Trickled down economics didn’t work to create jobs. That’s a statistical fact.

Larry, you’re so cockeyed prejudiced that you can’t see straight. You may profess to know a lot about gold and those precious commodities, but you don’t do very well when you start your rant in the political areas. You’ve hated Obama to the point where I consider you a racist. I hope you read what I’m saying here, but I doubt your censors will allow it. You are living a double-standard. It’s okay for you to inject your politics here, but when someone responds to you about the same subject area, you delete it. You won’t print it out here like you’ve done with others here, and it goes to show your hypocrisy. Grow a backbone or some cajones and allow my criticism to be shown here, but I know you won’t do it.

Thanks for all the great updates. The Dow has hit your 12,600 target already.

I have been looking at the DX lately and cycle wise it may only be able to rise for another couple weeks. Of course that would mean the downside would be limited for commodities after that point.

It doesn’t seem to matter which communist party is in control. Both sides keep stealing both our liberty and wealth. Everyone should think “downsize government” by 75% an let freedom once against ring for all people.

I’m shocked that Larry willingly spread the Republican presidential campaign’s false propaganda accusing Obama of issuing over 900 executive orders. During the campaign I received a copy of the apparently original – and very detailed – false propaganda release that was also being forwarded to 70 other e-mail addresses. Below is a link exposing the propaganda’s dishonesty. If Larry can’t provide a credible source dis-proving FactCheck.org’s analysis, he should apologize to his reader audience for politically attacking his country’s president with ridiculously dishonest rhetoric. But, don’t hold your breath, I sent the FactCheck.org address to the forwarder and the other 70 he forwarded the propaganda to; he nor the others replied to acknowledge it as dishonest.

Hit it right on the nose Barrack Hussein Obama is here to punish America for the ills of the world. He blames America and in time even his fools will know the truth. Its to late for me wish I had found your plan years ago.

Obama and Bush have both broken both constitutional law and legislative law with impunity. They have not been held to account.
The flouting of the rule of law as well as infinite money printing are both features of banana republics.
The USA is going to crash with more ferocity than did the USSR.
All those who vote, past and present, deserve what is coming down the pike.

Capitalism is a great system. Vulture Capitalism is NOT! What we have in America today is vulture capitalism, where the deck is stacked against the little guy because the big guys have become filled with greed, are immoral, and have no scruples.

The big boys want it ALL! In the real world that translates into social disruption and eventual revolution. In any nation where the upper class took too much, they eventually came crashing down. In the French Revolution they lost their heads—literally—at the guillotine.

No society can long prosper and exist in peace if it’s ruling class is immoral and greedy. Americans can see the stories in the media—one after the other—about yet another big shot with his hands in the cookie jar. Bernie Madoff was only one. Since his arrest there have been a long line of crooks nabbed in the act by the Feds.

In the minds of these leeches they are doing nothing wrong. In their twisted minds it is just fine to make money in any “clever” (to a normal human “immoral”) way. They laugh in the faces of the little people they defraud—-as the Goldman Sucks execs’ emails showed they called their small investors “munchkins” in derisive condescension.

This corporate culture of greed has permeated politics as well. MOST senators are multi-millionaires and became so AFTER coming into office. Insider trading among Congressmen is no secret. They have access to info and use it unethically to enrich themselves. Why else would someone spend a million dollars of his own money for a public office that paid $174,000 a year? Think about it.

Public servants? Oh really? How many times do politicians truly carry out the will of the people that elected them? They concentrate more on serving themselves.

(Question at end)
I enjoy your observations, recommendations and agree with many of them, though probably for different reasons. You caught hell on this past collumn from postings I’ve read.
No one creates jobs or businesses on a large scale for altruistic reasons. Henry Ford didn’t build cars primarily to put people to work. He did it for money. The likely reason Ford didn’t import cars, parts and/or labor to keep costs down is due to the fact there was no foreign industrialized complex to make it all happen and no way to econically transport such until modern shipping infrastructure was created in the later half of the 20th century. If you read details about long ago capitalists, you will generally find they were all ruthless(Vulture Capitalists). Sounds like today, huh.

Many of the those irrate over your opinions are just mad because they missed out on the profits and look for someone to blame. I rarely see any detractors of the wealthy who wouldn’t have chosen to be a vulture capitalist if only they had the money, power, brains or fortitude to be such. Hell, I’m mad too. I just can’t find anyone greater than myself to be mad at. I’ve made a lot of stupid investment choices.

However, my anger subsides when I look at my wife and children. We live in a modest, but comfortable home. I’m one of the fortunate ones, who has a stable job. Material things can bring happiness, but only things you love can bring true joy.

Question??? What are the chances of our government taking our gold or making it illegal to own gold, silver or such? Isn’t that what the government did during the great depression to save the banks and financial institutions. Then, you were forced to live by their monetary policy and accept their fiat money or starve. They could in one executive order freeze all gold held by any business or institution, making it impossible to buy, sell or take possession. Governments are not unlike people, they will do anything to survive. How can I guard against such, other than physically owning gold?

Thank you for your kind remarks.
I fully agree with you that indeed, at the stroke of a pen, government can decide to seize physical gold if it feels it is in its best interest to do so, and it HAS done so in the past.

There were MANY thoughtful and reflective comments on this blog this time around. We were glad to see so many saw through the egregious errors in reasoning and in facts in Larry’s comments and had the courage to speak up.

There are many guesses as to what turn the future may take for the United States of America. Anything is possible, as the future is NOT fixed, despite what some may think. There are variables. Much depends upon what the people themselves do or do not do.

Looking at everything from a more distant gaze, we would say the Earth and our lives on it are an obstacle course of sorts—a living Purgatory—in which we are tried and tested to see which choices we will make. It is those INDIVIDUAL choices that will determine our INDIVIDUAL fates, regardless of the mass acts of society, we believe, though we cannot help but share in the mass Karma while we are in physical life.

Yet it behooves us as a nation and a race to ATTEMPT to ameliorate our condition in any way we can, using the mind and physical powers given us. We, in a great sense, CREATE OUR OWN REALITY.

@Glenn
In the past, certain remarks I posted concerning what may have been construed as “survivalist” or “absurd” by some drew much derision. But, actually, upon deep reflection about what is happening on planet Earth these days with weather catastrophes increasing, insurrections, civil wars, economic crises, etc. one might be wise to take some simple (but crucial) precautions:
1. If you live in a cold climate have a heat source in your home other than electric, gas, or oil
2. Keep several months worth of food stored
3. Have a battery-powered radio for when the power goes off
4. Learn how to glean food from “the land” if the need actually arose (hunting if you are a meat eater, picking mushrooms, berries, wild fruits, fishing, etc.)
5. Keep tools on hand to dig shelters, buttress against rising water, or cut fallen trees that may be hazardous
6. Know where there is a spring or clean water source in case the running water in your dwelling fails
7. Keep silver coins or rounds handy as they MAY be acceptable for buying food items someone else could sell you (bars wouldn’t do you much good in a crisis).
8. Get to know your neighbors. You may need them, and they may need you!
9. It might be wise to leave urbanized areas if you can, as those areas will be the hardest places to survive in the event of catastrophe.
10. Keep true to your spiritual values, whatever those might be.

As I’ve said before, no one knows EXACTLY what turn events may take. As they get nearer those of us who are “attuned” will know first and have the obligation to warn others if the incoming information is warning of something dire.
But, it is important to EXPECT good things to happen, while at the same time preparing for any negative events. By our expectations we actually affect the “fields” of vibratory energy around us positively or negatively, so it BEHOOVES us to add to the good, not the bad, while at the same time not denying what is obviously upon us.

In the 60′s and 70′s, the rich paid about 70% income tax rate (before that up to 90%), which I’m not advocating, but it seems USA capitalism did OK in those years, as well as the Clinton years when the wealthy paid a higher rate. That’s what is being proposed – returning rates to the Clinton years for those making more than $250,000 (raising their rates 3.6%). This graph clearly shows a significant decrease in tax rates for the wealthy over the last 50 years.
HISTORICAL TAX RATES BY INCOME GROUP:http://visualizingeconomics.com/blog/2007/11/03/nytimes-historical-tax-rates-by-income-group.
(It’s dated, but the trajectory is clearly down for the rich, whereas the rate for the lower 40% of the population has remained about the same). Despite the fact that other measures of income show the gap to be widening, it’s not reflected in tax rates. You’d think some of these people were being asked to give away their homes the way they act – using words like class warfare as tho’ a progressive tax code is something new.

I’m not even going to address half of what you said that was questionable and in some cases downright wrong. It would take too much room. Nor will I take time to address issues that made Romney a poor candidate, except to say that not even Republicans wanted him. They tried picking anyone but him during the primaries. One reason he lost the election was that middle class voters couldn’t stomach the fact that his tax rate was so much lower than theirs, not to mention that he was reticent to reveal just 2 years of returns, leading people to believe he had something to hide. Why would he take so much flack that persisted for so long? That must have been tough to deal with. Less than a 4% rate increase that would bring in an estimated $2 trillion over the next decade would definitely help. Many respected conservatives who have looked at the figures state that they don’t add up without a balanced approach, including entitlement reform, overall tax reform, increased taxes for the wealthy, defense cuts, discretionary cuts, etc. Granted, the US fiscal state may be beyond repair, which is why I’ve bought precious metals. But just because they’ve waited so long to act doesn’t mean they shouldn’t try. You must have thought you could get some sore losers to sign up for your subscription – eh? I would expect better of you, Larry. I’ve been reading your columns since the financial crisis. This one is a disappointment.

Larry, sad to see the tone of your rant here. I have followed and enjoyed your market perspective for quite some time. However, you should probably stick to markets and leave the political stuff to Fox news. As other commenter’s have noted, you have stumbled into the right wing bubble when it comes to some of your “facts”. Not healthy.

As for this posting about our fiscal situation, and your prognosis as to where it is all leading, I beg you to acquaint yourself with a short graphical explanation.
This brief presentation is based on real facts from the non-partisan Congressional Budget Office and is posted here; http://www.youtube.com/watch?v=Wd4HDautaUw

Divisive arguments about class warfare serve only to shed heat, not light.